Moving Insurance: What It Covers and What It Doesn't

Most people who hire a moving company assume that if something breaks, the movers will pay to replace it. That assumption is wrong in most cases, and the gap between what people expect and what they actually receive after a damage claim is one of the most common sources of frustration in the moving industry. The reality is that moving companies are not automatically liable for the full replacement value of your belongings. Federal law governs interstate moves, and Washington state law governs local moves, but in both cases the default liability is far lower than most people realize. Understanding how moving liability works before your move is the only way to make sure you are adequately protected. This guide explains the two types of protection that moving companies offer, what your homeowner's or renter's insurance policy may or may not cover, and what third-party moving insurance options exist. It also explains the situations where no coverage applies at all, which is more common than most people expect.

Every moving company is required by law to offer basic liability coverage at no additional charge. This is called released value protection, and it is the default coverage that applies to your move unless you specifically request something different in writing. Under released value protection, the moving company's liability is limited to 60 cents per pound per article. That means if a 10-pound laptop worth $1,500 is damaged beyond repair, the maximum the moving company owes you is $6.00. If a 50-pound flat-screen television worth $800 is destroyed, the maximum payout is $30.00. Released value protection is not insurance in any meaningful sense. It is a liability cap that protects the moving company, not you. It exists because Congress passed the Carmack Amendment to allow moving companies to limit their liability in exchange for offering lower rates. The trade-off was designed for commercial freight, not household goods, but it applies to residential moves as well. Most reputable moving companies will explain released value protection clearly during the estimate process. If a moving company does not mention liability options at all, ask directly before signing anything. The liability terms are part of the bill of lading, which is the legal contract for your move. Read it before you sign it.

Full value protection is the alternative to released value protection, and it is the only coverage that provides meaningful financial protection for your belongings. Under full value protection, the moving company is liable for the replacement value of any lost or damaged item, subject to any deductible you choose. If an item is damaged, the moving company must either repair it to its original condition, replace it with a similar item, or pay you the cash value of the repair or replacement. This is a significantly higher standard than released value protection, and it is why full value protection costs more. The cost of full value protection varies by moving company and by the declared value of your shipment. Most moving companies calculate the premium as a percentage of the declared value, typically between 0.5% and 1.5%. For a move with $50,000 in declared value, full value protection might cost between $250 and $750. That cost is worth comparing against the value of what you own. Full value protection also comes with deductible options. Choosing a higher deductible reduces the premium. A common structure is a $0 deductible at a higher premium, or a $250 or $500 deductible at a lower premium. The right choice depends on the value of your most expensive items and your risk tolerance. Our residential moving services on the Eastside include a clear explanation of both liability options during the estimate process. We want every customer to make an informed choice before the move begins, not after something goes wrong.

Many people assume their homeowner's or renter's insurance policy will cover their belongings during a move. The reality is more complicated, and the answer depends on your specific policy. Some homeowner's policies do extend coverage to personal property in transit, but coverage is typically limited to named perils, which means only specific types of damage are covered. Accidental breakage during a move is often not a named peril, which means a mover dropping a box and breaking its contents may not be covered even if your policy extends to property in transit. Renter's insurance policies vary even more widely. Some extend coverage to property in transit; others explicitly exclude it. The coverage limit for property away from the insured premises is often capped at 10% of the total personal property coverage limit, which may be far less than the value of what you are moving. Before your move, call your insurance agent and ask two specific questions. First, does your policy cover personal property in transit during a move? Second, what perils are covered, and is accidental breakage included? Get the answer in writing. If your policy does not cover your belongings during a move, or if the coverage is inadequate, you have two options: upgrade your policy or purchase third-party moving insurance. Also ask about your electronics and high-value items specifically. Many homeowner's policies have separate sublimits for electronics, jewelry, art, and collectibles. A $200,000 homeowner's policy might have a $2,500 sublimit for electronics, which would not come close to covering a home office full of equipment.

Third-party moving insurance is coverage purchased from an independent insurance company rather than from the moving company itself. It is separate from the liability options the moving company offers, and it can provide coverage in situations where neither released value protection nor full value protection applies. The main advantage of third-party moving insurance is that it is true insurance, regulated by state insurance departments, with defined coverage terms and a claims process that is independent of the moving company. If you have a dispute with the moving company about a damage claim, having third-party insurance means you have a separate avenue for recovery. Third-party moving insurance typically covers all-risk perils, meaning it covers accidental damage regardless of cause, not just the specific perils listed in a homeowner's policy. It also typically covers the full replacement value of items, not a depreciated value. The cost of third-party moving insurance is generally 1% to 3% of the declared value of your shipment. For a move with $30,000 in household goods, coverage might cost $300 to $900. Companies like Baker International, Moveassure, and Safeguard offer policies specifically designed for household moves. Third-party insurance is worth considering if you have high-value items that exceed the coverage limits of your homeowner's policy, if your homeowner's policy does not cover property in transit, or if you want an independent claims process separate from the moving company.

Understanding what is not covered is as important as understanding what is. There are several categories of damage that are typically excluded from all moving liability and insurance options. Items packed by owner (PBO) are the most significant exclusion. If you pack your own boxes, the moving company is generally not liable for damage to the contents unless there is evidence of external damage to the box itself. If a box you packed arrives with a crushed corner and the contents are broken, you may have a claim. If the box arrives intact but the contents are broken, you almost certainly do not. This exclusion is why professional packing matters for fragile items. Our packing services include professional packing of fragile items with appropriate materials, which preserves your ability to file a claim if something is damaged in transit. When movers pack an item, they are responsible for the packing quality and the condition of the item on arrival. Mechanical or electrical derangement is another common exclusion. If a television arrives physically intact but no longer works, most moving liability policies will not cover it. The presumption is that the malfunction is unrelated to the move unless there is visible physical damage. Items of extraordinary value require special handling.

• Jewelry
• Cash
• Coins
• Stamps
• Documents
• Collectibles

These items are typically excluded from standard moving liability unless specifically declared and insured at a higher rate. If you have items in these categories, declare them separately and confirm coverage in writing before the move. Finally, damage caused by acts of God is typically excluded from moving liability. Examples include:

• flooding
• earthquakes
• severe weather

If your belongings are damaged because a moving truck is caught in a flash flood, the moving company is generally not liable. Third-party insurance policies may cover these events, but check the exclusions carefully.

The most effective protection is a combination of documentation, communication, and the right coverage choice before the move begins. Before the move, create a written inventory of your high-value items with photographs and estimated replacement values. This documentation is essential if you need to file a claim. Without it, proving the pre-move condition and value of an item is difficult. Store the inventory and photographs in a cloud service so they are accessible after the move. For fragile items, read our guide on how to protect fragile items during a move for packing standards that preserve your ability to file a claim. Items that are professionally packed and clearly labeled are far more likely to result in a successful claim if they are damaged. During the move, note any existing damage on the bill of lading before the movers begin loading. If a piece of furniture already has a scratch, document it. If you sign the bill of lading without noting pre-existing damage, the moving company can argue that the damage was pre-existing when you file a claim. After the move, inspect every item before signing the delivery receipt. Note any damage on the delivery receipt before the movers leave. Filing a claim after the movers have left and you have signed a clean delivery receipt is significantly harder than noting damage at delivery. For interstate moves, you have nine months from delivery to file a damage claim under federal law. For local moves in Washington state, the timeline is set by the moving company's terms and is typically 30 to 90 days. Do not wait.

The right coverage choice depends on the value of what you own, your existing insurance coverage, and your risk tolerance. For most residential moves, full value protection from the moving company is the simplest and most cost-effective choice. It eliminates the need to coordinate with a separate insurance company, and the cost is typically reasonable relative to the protection it provides. Ask for a quote on full value protection with a $250 deductible and compare it to the $0 deductible option. If you have high-value items that exceed the moving company's declared value limits, or if you have had a negative experience with a moving company's claims process in the past, third-party moving insurance is worth the additional cost. If your homeowner's or renter's insurance policy covers property in transit with all-risk perils and adequate limits, you may not need to purchase additional coverage. But confirm this in writing before your move, not after. Released value protection is never the right choice if you own anything of significant value. The 60-cents-per-pound liability cap is not meaningful coverage. It exists as a legal minimum, not as a practical protection option. When you request a moving estimate, ask the moving company to explain both liability options in writing. A reputable moving company will do this without hesitation. If a company is vague about liability or discourages you from choosing full value protection, that is a red flag worth taking seriously.